Description
Contemporary Organization Evaluation
Describe The Organization And The Change To Which It Is Responding.
The organization I will analyze is McDonald’s. McDonald’s is an American multinational chain of fast food restaurants that serve fast food such as hamburgers, cheeseburgers, soft drinks, chicken products, breakfast foods, french fries, desserts and so on. Their outlets are in about 120 countries, and they have roughly 36,899 outlets. They serve about 68 million customers daily, and this makes the company be among the largest restaurant chains globally. The company is popular with many people, especially its American population. It is also the second highest corporation in the world, behind Walmart that provides employment opportunities to people. It has currently employed 1.5 million employees across the globe who work in the many outlets found in the world.
The company has been undergoing a change in the past two years as it has been attempting to eliminate any chicken that was raised using antibiotics from its menu (Peterson, 2015). This has been caused by the pressure from the customers to serve healthier meals to the clients. The research centers such as the CDC have also cited cases of deaths of people due to antibiotic resistant disease causing microorganisms after the consumption of such chicken. This has only served to increase the pressure on the company which has led it to decide to abstain from using such chicken on its food products and menu. The company has also changed its business model to bring more personalized service to the customers. This means that it will be more inclined to what the customer needs rather than the fastest way to serve all customers.
Discuss The Degree To Which The Change Has Been Disruptive And How The Organization Has Responded To The Dynamics Created By This Change.
McDonald’s is mainly known as a chicken product fast food, and the change has severely disrupted its menu. It has led to the company making some changes to the menu such as removing some ingredients from the chicken sandwiches and using more natural ingredients in their preparation of the chicken such as real buttermilk. It has also disrupted the farming practices of its suppliers as it has worked together with them to stop rearing chicken with antibiotics so as to fulfil the change requirement (McDonald’s Team, 2016). The company has also had to change some of their menu items to include more healthy options, such as the addition of kale to the breakfast bowls and trying out recipes where they use different organic ingredients so as to satisfy the healthy meal requirement. Change has also disrupted its business practices as the company has reduced the items found in the drive-through menus as well as created kiosks for the people to order so as to reduce the wait time of the customers (Sixdegs, 2014). This is in a bid to personalize services for the customers.
The company has responded to the dynamics of the change in style. It has used the changes as a platform to improve its services and image to the consumer. Providing healthier meals has been used as a strategy to attract more clients as there is a growing trend of eating healthy, especially among the millennials. Personalized service has been used by the company to attract more clients and create a competitive edge against its competitors. The company has clearly exploited these changes.
Evaluate The Strategies The Organization Used In Its Change Plan And Determine The Level Of Success The Organization Experienced With The Strategies.
The company has used various strategies in its change plan. The company has taken to publicizing its intended changes to the public. This has made the public aware of the changes the company will make and has acted as a marketing tool for the products and services it is offering. The company has also changed the farming strategies of the chicken suppliers. This has been in a bid to implement its promise to not use antibiotic-exposed chicken in making its food items. This has gone a long way into helping it achieve the desired change. The company has also received a lot of success with the strategies. The company has also taken to training its current employees on how to relate with the customers after employing the kiosks, and limited menu drives through. A trained workforce will implement the changes the company needs effectively.
The company has reported a 6% increase in customer satisfaction with the application of these strategies (Trefis Team, 2016). This is because it is offering personalized and quality service to the customers which lead to customer satisfaction. It has also seen an increase in the sales of their products, to be specific a 6.2% raise. This is due to its use of All Day Breakfast initiative, commitment to eliminate the use of antibiotic exposed chicken from the menu and the introduction of healthier meals on the menu. It has been able to keep with the trend and preferences of the customers, therefore increasing its customer base.
Determine The Effect The Change Had On Stakeholders, And To What Degree Stakeholders Have Resisted. Assess How Well Stakeholder Resistance Was Addressed.
The change has been majorly accepted by the stakeholders. The customers have received the changes with delight because the company has responded to their needs and preferences. The employees have provided little resistance to the changes as these changes have increased their workload. This has however been swiftly mitigated by increasing the pay of the employees. This has motivated them to accept the changes and work harder which has allowed the quick implementation of the changes. The suppliers have also been affected by the change. They have had to work together with the company so as to eliminate the practice of rearing chicken with antibiotics. This has enabled the company to fulfil the promise it made to its customers. The suppliers’ farming practices have had to change so as to fulfil this requirement (McDonald’s Team, 2016). Any resistance from the suppliers has been met with a joint effort between the supplier and the company to find a way that will be amicable to both companies. The changes have in general gone on without any hitch and have helped the company achieve its goals.
Evaluate The Overall Implications The Change Had On Interdepartmental Collaboration.
It has increased the departmental collaboration. The management has become more involved in the workings of the company menu thereby eliminating the bureaucracy that has plagued the company and allowed for freer communication between the management and the company. The human resource department now collects information from the customers and delivers information to the food experts who use it to develop new meals and dishes. The IT department has also developed online kiosks where the customers can order, and they relay this information to the kitchens and franchises. There has been more interdepartmental collaboration due to the changes.
In Your Opinion, How Well Did The Leaders Of The Organization Respond And Prepare For The Change? What Worked And What Did Not Work With The Strategies They Implemented?
I believe that the leaders responded and prepared for the changes they implemented quite nicely. They announced the initiative to remove the antibiotic-reared chicken for the menu and gave a two-year period to achieve that goal. The period allowed the leaders to work together with the suppliers and develop effective strategies to achieve this radical change (McDonald’s Team, 2016). The inclusion of the suppliers in the deliberation process so as to achieve the change rather than just giving demands to them also greatly helped to reduce the resistance among the suppliers. The leaders also prepared the employees adequately for the change by training them. This initiative made them able to fulfil their duties to the customers who gave the customers an amazing experience. They also motivated the staff by offering a pay rise to them which greatly helped to reduce the resistance to the change from the employees.
What Modifications Would You Suggest The Leaders Of The Organization Make To Better Address The Change Dynamics? What Additional Strategies Would You Recommend To Assist The Organization Through This Change?
The organization could try and involve their employees more in the process. The employees will be the ones to implement these changes, and they should, therefore, include their input more in their managerial decisions and strategic plans. This will make it easier to implement the changes in the company as there will be reduced resistance from the employees. It will also motivate the employees much more than a pay rise. It can also treat their employees fairly. It could increase the minimum wage and pay for every employee (Rosenfeld, 2015). This will serve to motivate them to execute the changes the company would like. The leaders should also consider the price ranges of these foods. They should try and ensure that the meals introduced are mid-priced. The company often sells premium burgers or low-priced burgers. The mid-priced burgers are lacking, and therefore the company should consider this when deciding the new food it would like to introduce to the market.
References
McDonald’s Team. (2016, August 1). McDonald’s USA Announces Big Changes to Its Food. McDonald’s Newsroom.Accessed on 2017, March 21. Retrieved from:
http://news.mcdonalds.com/us/news-stories/2016/mcdonald-s-usa-announces-big-changes-to-its-food
Peterson, H. (2015, May 14). 12 dramatic changes McDonald’s made this year. Business Insider.Accessed on 2017, March 21. Retrieved from:
http://www.businessinsider.com/mcdonalds-changes-in-the-past-year-2015-5?IR=T#
Rosenfeld, L. (2015, April 23). 6 Ways McDonald’s May Be Able to Turn around Its Struggling Sales. Tech Times.Accessed on 2017, March 21. Retrieved from:
http://www.techtimes.com/articles/48348/20150423/ways-to-improve-mcdonalds.htm
Sixdegs, A. (2014, April 15). How digital technology is changing McDonald’s structure, offer and customer relationships. SMWF Blog.Accessed on 2017, March 21. Retrieved from:
http://www.socialmedia-forum.com/blog/2014/04/london/how-digital-technology-is-changing-mcdonalds-structure-offer-and-customer-relationships/
Trefis Team. (2016, May 3). How McDonald’s is Effectively Executing Its Turnaround Strategy? Forbes. Accessed on 2017, March 21. Retrieved from:
https://www.forbes.com/sites/greatspeculations/2016/05/03/how-mcdonalds-is-effectively-executing-its-turnaround-strategy/#55705cad4c69